According to the simple Keynesian model, when planned expenditure exceeds income
a. prices rise.
b. unplanned inventory investment is negative.
c. income falls.
d. planned expenditure falls.
e. both b and d.
B
You might also like to view...
The deadweight loss of taxation from an income tax is because of _____
a. the inclusion of savings in the tax base b. the Laffer curve c. the income effect d. the substitution effect
Cheap talk works at placing workers in the right job as long as
A) the interests of the worker and the firm coincide. B) all workers want the most demanding jobs regardless of their abilities. C) workers have different ability levels that are unknown to firms. D) firms are not profit maximizers.
One advantage of a proprietorship is that
A) it is relatively easy to raise financial capital for a proprietorship. B) a proprietorship is relatively easy to form and to dissolve. C) there are limits to the possible liabilities of the owner. D) depreciation rates on capital are higher.
Aggregate surplus:
A. is minimized under perfect competition. B. is the difference between consumer and producer surpluses. C. is the sum of consumer and producer surpluses. D. will never be positive in the long run.